CONCEPTUAL APPROACH TO TAXES

Transcription

1 CONCEPTUAL APPROACH TO TAXES TAX YEAR th EDITION Income Tax Sales tax Capital Value Tax Federal Excise Act & Rules, 2005 By: NADEEM BUTT Chartered Accountant FCA, FPFA, B.Com. AMAN PUBLICATIONS COMPANY

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3 ALL RIGHTS RESERVED BY THE AUTHOR No responsibility shall be taken for any mistake, error or omission regarding any material contained in this book. 6 TH Edition: 2016 AUTHOR NADEEM BUTT Chartered Accountant FCA, FPFA, B.Com. PRICE Rs. 600/-

4 SALIENT FEATURES OF THIS EDITION Use of easy & understandable language. Covers the syllabus of CA Module C, CAM-IV, ICMAP Stage IV & M.Com. Helpful for the students & teachers of CA - Final, ACCA (PAK), Higher National Diploma (HND), MBA, MPA, PIPFA & LLB. Added various examples & solved practice questions to demonstrate the theory. Reference of relevant provisions of income tax & sales tax law has been given. Added after each chapter past papers topic wise theoretical questions of ICMA Stage IV from tax year 2003 to 2015 & CA Module C / Stage-II CAF-06 from tax year 2001 to Added past papers numerical questions of ICMA Stage IV from tax year 2003 to 2015 & CA Module C / Stage-II CAF-06 from tax year 2001 to Includes the amendments incorporated by the Finance Act, Useful for all who want to learn, teach & practice Income tax & Sales tax. FACILITY FOR ANY QUESTION OR QUERY FROM THE AUTHOR AT: Ph No: and Cell: 0333 / info@nbandco.com and nadeembutt@nbandco.com

5 PREFACE TO THE SIXTH EDITION With the grace of Almighty ALLAH and prayers of my family, friends, and students, I am presenting the Sixth Edition of Conceptual approach to taxes. This book is primarily for the students of CAF - of ICAP, Stage IV of ICMAP and M. Com. I hope this book will serve the purpose of the students, teachers & other persons related with the taxation. The book primarily consists of notes on each chapter with examples, multiple choice questions, practical problems with solutions and topic wise last year questions from tax year 2003 to I am grateful to all those who contributed a lot in the completion of this book. My special thanks are due to my staff. All positive criticism with suggestions for the improvement will be entertained. Nadeem Butt Chartered Accountant October 01, 2015

6 THE AUTHOR Mr. Nadeem Butt qualified as a Chartered Accountant in 1998 & after working with a well known professional firm as Tax Manager has started his own professional firm under the name and style Nadeem & Co. Chartered Accountants in 2007 & is practicing as Fellow member of ICAP mainly in audit, income tax & sales tax for more than 200 various corporate and non-corporate clients in Pakistan. He is also the life time member of Lahore Tax Bar Association and Audit & Tax advisor of All Pakistan Cottage Industry & Small Traders Association. Member, (special invitees) Taxation Committee of Lahore Chamber of Commerce & Industry (LCCI). 17 years post qualification teaching experience in the subjects of Taxation.. Visiting faculty member of the following professional educational institutions in providing coaching for the exams of Taxation: 1. College of Accountancy & Professional Studies(CAPS) Module C & F 2. Institute of Cost & Management Accountants of Pakistan (ICMAP) Stage IV 3. Institute of Chartered Accountants of Pakistan (ICAP) Module C 4. Rise School of Accountancy Module C 5. Premier DLC (A project of Beacon house) AFC- CA 6. The University of Lahore M. Com. 7. SKANS School of Accountancy Module C 8. Punjab Group of Colleges M. Com. 9. GC University, Lahore Business Taxation Coaching Appointed as auditor on behalf of the tax department by the Federal Board of Revenue for Special Audit Under section 4A of the repealed Income Tax Ordinance of various corporate and non-corporate entities. Two students of Mr. Nadeem Butt (FCA) got 1 st & 2 nd positions all over the Pakistan by scoring 98% & 97% marks in Taxation exam of ICMAP. Student of Mr. Nadeem Butt (FCA) got the first gold medal in the history of SKANS School of Accountancy, Lahore in Financial Accounting Module C exam of ICAP.

7 INCOME TAX For CA & ICMAP Students S. No. CHAPTERS Page No. 1 Taxation System 1 2 Ethics in tax Laws 9 3 Constitutional Provisions 17 4 Preliminary 27 5 Introduction & geographical source of income 59 6 Computation of taxable income 71 7 Income from Salary 85 8 Income from property Income from business Assets and depreciation Method of accounting & records Capital gains Income from other sources Losses Tax credits Common rules Returns and Assessments Appeals & Revisions Income Tax Authorities Exemptions other than Covered in Respective Chapters Solved Past Papers C - (2001 to 2015) Income Tax Numericals of CA Module 323 For CA Mod F & ICMAP Students S. No. CHAPTERS Page No. 22 Final Tax Regime & Minimum Tax Deduction / Payment of Tax Offences and prosecutions Insurance business Oil, natural gas & other mineral deposits Banking business Solved Past Papers Income Tax Numericals of ICMAP Stage IV (2003 to 2015) 489

8 SALES TAX For CA & ICMAP Students S. No. CHAPTERS Page No. 1 Preliminary Registration Sales Tax Returns Records & Books Scope and Payment of Tax Practice questions with solutions Solved Past Papers Sales Tax Numericals of ICAP - (2003 to 2015) 615 For CA Mod F & ICMAP Students S. No. CHAPTERS Page No. 8 Recovery of Arrears & Refund Offences & Penalties Appeals Sales Tax Special Procedure Rules, Sales Tax Special Procedure (Withholding) Rules, Solved Past Papers Sales Tax Numericals (2003 to 2015) 691 of ICMAP Stage IV 14 Third, fifth and sixth Schedules Eighth and Ninth Schedules 715

9 CAPITAL VALUE TAX & FEDERAL EXCISE DUTY For CA Mod F & ICMAP Students S. No. CHAPTERS Page No. (A) CAPITAL VALUE TAX 729 (B) FEDERAL EXCISE ACT & RULES, Definition Levy, Collection & Payment of Duty Offences & Penalties Federal Excise Rules,